Core Insights - Expedia Group reported third-quarter results that exceeded expectations, driven by advancements in artificial intelligence (AI), automation, and enhanced partner connectivity, marking the strongest momentum in over three years and leading to an increase in full-year guidance [1][3][11] Financial Performance - Gross bookings rose 12% to $30.7 billion, while revenue increased 9% to $4.4 billion, attributed to higher lodging and air prices, improved demand, and enhanced marketing efficiency [3][11] - Free cash flow reached $3 billion, with the company ending the quarter with $6.2 billion in cash and short-term investments, indicating operational discipline amid investments in automation [3][14] AI and Technology Integration - AI is central to Expedia's travel ecosystem, enhancing how customers search, plan, and book trips through intelligent recommendation models and automated review summaries [4][5] - The company has seen double-digit growth in vacation rentals and record attach rates on ancillary services due to AI-powered changes across its platforms [5] Consumer and B2B Growth - Consumer bookings increased 7% year-over-year, with notable growth outside the U.S. and strong performance in Europe, while the B2B segment saw bookings rise 26% and revenue increase 18% [5][7][13] - The travel-agency solutions business grew 25%, surpassing $3 billion in bookings year-to-date, supported by new automation tools [8] Cost Management and Efficiency - The cost base benefited from automation, with direct sales and marketing expenses falling 4% in the consumer segment and cost of revenue declining 3% [9] - Partnerships with major technology providers like Google and OpenAI are enhancing Expedia's adaptability to new travel discovery patterns [6] Future Outlook - For the fourth quarter, Expedia anticipates gross bookings and revenue growth between 6% and 8%, with full-year 2025 guidance projecting bookings growth of about 7% and revenue growth of 6% to 7% [10][15]